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Interconnection reform efforts pay off with highest volume on record in 2024

admin by admin
August 31, 2025
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United States grid interconnection agreements reached historic highs in 2024, surging 33% to 75 GW — the highest volume on record — due to new federal regulations aimed at streamlining the process, according to a new report from Wood Mackenzie.

According to the report “Tracking the progress of US grid interconnection,” data from Wood Mackenzie’s Lens Power and Renewables platform shows that Federal Energy Regulatory Commission (FERC) Order No. 2023, issued in July of 2023, along with other reforms led by Independent System Operators (ISOs), has made a considerable impact on processing interconnection agreements, by driving improvements through reducing speculative projects and clearing queue backlogs.

On top of increased connections, regional grid operators are experiencing 9% fewer new project entries, a 51% increase in withdrawals of non-viable projects since 2022.

“It’s clear that these reforms are showing early signs of promise in accelerating the pace of interconnection studies,” said Kaitlin Fung, research analyst, North America Utility-Scale Solar for Wood Mackenzie. “We saw a record year in 2024, with 75 GW of secured capacity. 2025 is maintaining this momentum, as major grid operators have already secured 36 GW through July 2025, positioning the year to match 2024’s record.”

Solar and storage continue to dominate secured interconnection agreements

Solar and storage technologies captured 75%, or 58 GW, of all interconnection agreements in 2024 and will retain a similar market share in 2025. Solar has accounted for half of all signed IAs since 2019, a trend that continues in 2025.

Natural gas has seen an increase in interconnection requests since 2022, adding 121 GW of capacity. This trend has continued in 2025 with new applications for gas generation already breaking annual records by mid-year. However, the number of successful gas interconnection agreements is down 25% since 2022, mainly in PJM, MISO and ERCOT.

Regional differences

“Interconnection success rates and queue processing times vary dramatically for different grid operators across regions,” said Fung.

According to the report, ERCOT leads in both success rates and processing speed due to its streamlined queue process through their connect-and-manage approach. ISONE ranks second in success rates but has the longest processing time due to its delayed transition from serial to cluster-based processing. CAISO ranks third, but has one of the lowest success rates, driven by a high volume of speculative projects.

“While we’re seeing positive momentum, significant challenges remain,” added Fung. “Natural gas projects are entering queues at record levels but declined in annual signed interconnection agreements since 2022, and regional disparities in processing times highlight the need for continued reform efforts.”

News item from Wood Mackenzie

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